BMW’s SUV ‘Add On’ Presents Lending Opportunities, Challenges

BMW is working out a way to ease consumer apprehension around purchasing electric cars that has interesting implications for lenders.

Many consumers are reluctant to buy electric vehicles, and BMW knows it. The two main concerns about making the leap to electric are: 1) space issues; and 2) the fear of getting stuck with a dead battery.

To overcome those concerns, BMW is offering consumers who buy an electric car the use of a larger SUV. When a trip arises that requires more space or a longer drive, drivers can use the SUV, rather than their eco-friendly car.

Lenders will need to be a part of this incentive, as well. The add-on SUV changes the financing dynamic, adding other factors, such as how often and how far the driver would take the SUV, nevermind the fact that there is a second car to consider. If these challenges could be overcome, this could help make an unpopular vehicle a more viable option for consumers, in addition to opening new lending opportunities.